06-Nov-2018 / 20:00 CET/CESTRelease of an ad hoc announcement pursuant to Art. 53 KRThe issuer is solely responsible for the content of this announcement.

Press release

ASMALLWORLD AG (SWX:ASWN) calls an extraordinary general assembly to elect Alexander Koenig as new Board member, and to increase authorized share capital

Zurich, 6.11.2018 - ASMALLWORLD AG's Board of Directors proposes Alexander Koenig, who holds 9% of the share capital of ASMALLWORLD AG, for election as a new member of the Board of Directors in an extraordinary general assembly to be held on November 28th, 2018. Alexander Koenig will also oversee the international expansion of First Class & More, starting in early 2019. For the extraordinary general assembly, the Board also proposes an increase of the company's authorized capital, from ~1.3M to 3.5M shares, to create flexibility for targeted M&A transactions and for a potential capital increase in the near future. Such a capital increase will accelerate the growth of the international business of First Class & More, strengthen the company's balance sheet, and fund potential M&A transactions. Anchor investor ASW Capital AG has already committed to fully support a potential capital increase.

Today, ASMALLWORLD AG invites its shareholders to an extraordinary general assembly on November 28th, 2018 to elect Alexander Koenig to its Board of Directors. "We are extremely excited to have Alexander Koenig join our Board of Directors. He has a lot of expertise in the travel industry from running First Class & More, and a strong strategic mindset from his time at McKinsey and Boston Consulting Group, which will make him a valuable addition to our Board," Jan Luescher comments.

At the same time, the Board proposes to increase the company's authorized share capital from its current ~1.3M shares to 3.5M shares. The company plans to use this additional strategic flexibility for targeted M&A transactions and for a potential capital increase in the near future. Such a capital increase would accelerate the growth of the international business of First Class & More, strengthen the company's balance sheet and fund any potential M&A transactions. Anchor investor ASW Capital AG has already committed to fully support a potential capital increase.

ASMALLWORLD AG has made significant progress with its business in terms of revenue growth and profitability. While the company had CHF 5M of revenue and a profitability of CHF -2.4M in 2017, in 2019, the company expects to cross the CHF 10M revenue mark and deliver a profitability level much closer to break-even. "We are very pleased with the growth rate we have achieved so far this year, which is above our original plans" says Jan Luescher, CEO of ASMALLWORLD AG.

An important contribution to the company's future growth will come from the recent acquisition of First Class & More, the leading subscription-based luxury travel community in the DACH region. First Class & More is expected to generate over CHF 2.5M in free cash-flow in full-year 2018, a number expected to rise further in 2019. The acquisition was partly financed through a loan provided by ASW Capital AG, ASMALLWORLD AG's anchor investor. ASW Capital AG has committed to convert up to CHF 10M of its current loan into equity to strengthen ASMALLWORLD AG's balance sheet.

"We appreciate the commitment of our anchor investor to further invest into ASMALLWORLD AG. This will allow us to maintain a more robust balance sheet and will improve our P&L going forward. Both aspects will help us to grow further", Jan Luescher comments.

About Alexander Koenig

Alexander Koenig is the most renowned expert in the DACH region when it comes to the best usage of loyalty programs, specifically for airlines and hotels. Given his expertise, the German press calls him the "Meilenkoenig" (King of Miles). The original idea of First Class & More, a subscription-based luxury travel community, dates back to 2003. Alexander Koenig holds a PhD in marketing and has comprehensive marketing, market research and business intelligence experience. He also spent many years in management consulting and worked at McKinsey & Co. as well as the Boston Consulting Group.

ASMALLWORLD, the world's leading lifestyle community, is a private social network that connects people with a shared passion for the good life.

Each year, ASMALLWORLD organises more than 1000 events around the world, where members can expand their private and professional networks. The ASMALLWORLD website and mobile apps offer members the opportunity to engage in discussions, obtain travel advice from the Travel Guides or other members, or meet other members whilst travelling the world. Members also enjoy exclusive privileges from international partners such as status upgrades, discounts and additional services.

Besides the global ASMALLWORLD community, Zurich-based ASMALLWORLD AG operates First Class & More, a subscription-based luxury travel community, ASW Travel AG, which provides bespoke travel arrangements for its customers, as well as The World's Finest Clubs AG, which offers its members access to the most exclusive nightlife venues around the world.